Disputes Over Wages

In an employment law setting, the term "Wage Dispute" can refer to two things:  either negotiations involving wages, or the non-payment/withholding of wages. In particular, most wage law concerns the first area of negotiations over wages. This usually means the situation where employees are asking employers for higher wages. Some main issues that arise when discussing the topic of wage negotiations are labor unions and wage standards set by the government.

Collective Bargaining Agreements

The first way a wage dispute can come about is when a unionized strike or boycott results in a collective bargaining agreement. A collective bargaining agreement is a specific employment contract that is negotiated between a labor union and an employer on behalf of the employees.  Such agreements usually involve rallying for higher wages and more acceptable benefits such as health and medical insurance. The agreements tend to be renegotiated on a periodic basis.

Workers have a right to vote on whether or not to be represented by a labor union. This right is granted by the National Labor Relations Act (NLRA)

Violations of Government Wage Standards

The Fair Labor Standards Act (FLSA) gives workers a right to a minimum wage according to state and federal laws. The FLSA also establishes various other rights such as overtime pay.

The Fair Labor Standards Act does not restrict states from allowing higher minimum wage standards than federal standards. For example, the federal minimum wage may be set at a $7.25. However, a state may set the state minimum wage at a higher rate, for example, $8.00.

In other words, a wage dispute may result in different outcomes under federal and state laws. Check with an attorney who can help verify the different standards in wages.

Withholding/Non-Payment of Wages

Lastly, it is against the law for an employer to pay its workers less than what was promised, or to pay them nothing at all if they are owed wages. In such cases, a court will usually look for an employment contract that was made between the employer and the employee. The contract should specify the amount of wages and the time periods for pay. If such a contract is found, then the principles of contract law will apply.

Other Disputes

Other disputes over wages involve such issues as failure to provide worker's compensation, withholding of income for tax purposes, and incorrect or fraudulent statements made on employee's W-2 forms. In such cases, relief may be had through the proper administrative agency, such as the IRS or the Department of Labor.

Points to Consider

If you have been involved in a dispute over wages, it is helpful to consult with an attorney. Oftentimes workers can be estranged from their labor union representative, meaning that they are often uninformed when it comes to their rights in wages. Here are some points to consider: